USD/JPY Slips as Japan’s Industrial Production Inches Up
- Yen rises against the US Dollar as Japanese industrial data point higher
- They’ve now scored two straight months of rising gains
- The numbers came at a good time for Yen bulls as the Dollar’s rally was faltering
The Japanese Yen caught quite a strong bid against the US Dollar early in Wednesday’s Asian session after official data showed that Japanese industrial production rose for a second straight month in November, if only by a whisker.
Preliminary numbers had production up 0.1% from September, when the markets had been looking for no gain at all. On-year the picture remains obdurately gloomy, with production down 1.3%. However, this was as expected.
In another bright spot, September’s data were revised upward to show a 0.6% on-month rise. The initial assesment was that production had been flat. Japan’s manufacturing ecomomy returned to growth in September after a tough period made worse by devastating earthquakes.
The latest data provide some hope that vigor can be sustained, although shipments for export seem to be behind a lot of it, rather than the increased domestic demand that Tokyo would love to see.
The Yen certainly made gains in its wake. USD/JPY was at 112.52 before the data. It sank to 112.34 in the aftermath. However the Dollar’s general rally had been under some pressure before the numbers, stalling as investors wondered how much further the prognosis of inflationary fiscal spending under new President Donald Trump next year could take it.
Clear win for Yen bulls
Chart compiled using TradingView
--- Written by David Cottle, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.